Category Archives: Economic Analysis
This time is different. Nothing changes until it does and it just did this year.
Many analysts still struggle with equity valuations. This is an exercise in futility in this new era of investors looking for a “store of value.”
Although the correlation between the stock market and the U.S. dollar does not in general imply any causation, with high certainty we can say that year-to-date stock index returns are for the most part related to currency fluctuations.
The biggest danger of the cryptocurrency bubble is not speculator losses but hyperinflation. As the value of virtual currencies increases and they gain acceptance in commerce, the danger of hyperinflation that will damage economies worldwide is also increasing.
Gold rallied about 2% after the rate increase announcement yesterday. The financial media believes that this was a typical “buy the fact” reaction. They are wrong.